GAAP EPS were $2.11 compared to $1.40 and GAAP operating income was $2,022 million compared to $1,364 million.

The Company generated $1.2 billion of free cash flow compared to $1.0 billion in the first quarter of 2014.

"With solid execution in the first quarter, Amgen achieved strong sales and earnings growth and demonstrated substantial progress in achieving our long-term objectives," said Robert A. Bradway, chairman and chief executive officer. "Our continuing success in delivering results gives us the confidence to increase our full year outlook for earnings."

Year-over-Year

$Millions, except EPS and percentages

Q1 '15

Q1 '14

YOY Δ

Total Revenues

$ 5,033

$ 4,521

11%

Adjusted Operating Income

$ 2,449

$ 1,860

32%

Adjusted Net Income

$ 1,911

$ 1,438

33%

Adjusted EPS

$ 2.48

$ 1.87

33%

GAAP Operating Income

$ 2,022

$ 1,364

48%

GAAP Net Income

$ 1,623

$ 1,073

51%

GAAP EPS

$ 2.11

$ 1.40

51%

References in this release to "adjusted" measures, measures presented "on an adjusted basis" or to free cash flow refer to non-GAAP financial measures. These adjustments and other items are presented on the attached reconciliations.

First Quarter 2015 Product Sales Performance

Total product sales increased 12 percent for the first quarter of 2015 versus the first quarter of 2014. The increase was driven primarily by ENBREL, Prolia, EPOGEN, Sensipar and XGEVA. Growth for the quarter was due to price and higher unit demand.

Research & Development (R&D) expenses decreased 14 percent in the first quarter of 2015 driven by savings from transformation and process improvement efforts.

Selling, General & Administrative (SG&A) expenses increased 1 percent in the first quarter of 2015 as increased commercial expenses for new product launches were enabled by savings from transformation and process improvement efforts.

Tax Rate for the first quarter of 2015 increased due to changes in the geographic mix of earnings, offset partially by the favorable impact of a state tax audit settlement.

$Millions, except percentages

On an Adjusted Basis

Q1 '15

Q1 '14

YOY Δ

Cost of Sales*

$735

$684

7%

% of sales

15.1%

15.7%

(0.6) pts

Research & Development

$856

$994

(14%)

% of sales

17.6%

22.8%

(5.2) pts

Selling, General & Administrative

$993

$983

1%

% of sales

20.4%

22.6%

(2.2) pts

TOTAL Operating Expenses

$2,584

$2,661

(3%)

Operating Margin

50.2%

42.7%

7.5 pts

Tax Rate*

17.0%

15.4%

1.6 pts

pts: percentage points

*

Impact of Puerto Rico excise tax is included in Cost of Sales and Tax Rate. Excluding Puerto Rico excise tax, Cost of Sales would be 1.9 pts. and 2.1 pts. lower for 2015 and 2014, respectively; and the Tax Rate would be 2.8 pts. and 3.5 pts. higher for 2015 and 2014, respectively.

Cash Flow and Balance Sheet Discussion

The Company generated $1.2 billion of free cash flow in the first quarter of 2015 versus $1.0 billion in the first quarter of 2014.

The Company's second quarter 2015 dividend of $0.79 per share declared on March 4, 2015, will be paid on June 5, 2015, to all stockholders of record as of the close of business on May 14, 2015.

During the first quarter, the Company repurchased 2.9 million shares of common stock at a total cost of $0.5 billion. The Company has $3.4 billion remaining under its stock repurchase authorization.

$Billions, except shares

Q1 '15

Q1 '14

YOY Δ

Operating Cash Flow

$1.3

$1.1

$0.2

Capital Expenditures

0.1

0.2

(0.1)

Free Cash Flow

1.2

1.0

0.2

Dividends Paid

0.6

0.5

0.1

Share Repurchase

0.5

0.0

0.5

Avg. Diluted Shares (millions)

770

768

2

Cash and Investments*

27.1

23.2

3.9

Debt Outstanding

30.3

32.0

(1.7)

Stockholders' Equity

26.5

22.7

3.8

*

Q1 2014 includes long-term restricted investments.

Note: Numbers may not add due to rounding

2015 Guidance

For the full year 2015, the Company now expects:

Total revenues in the range of $20.9 billion to $21.3 billion and adjusted EPS in the range of $9.35 to $9.65. Previously, the Company expected total revenues in the range of $20.8 billion to $21.3 billion and adjusted EPS in the range of $9.05 to $9.40.

Adjusted tax rate to be in the range of 18 percent to 19 percent. This excludes the benefit of the federal R&D tax credit, which has not yet been extended for 2015.

Capital expenditures to be approximately $800 million.

First Quarter Product and Pipeline Update

Key 2015 milestones:

Clinical Program

Indication

Milestone

Corlanor® (ivabradine)

Chronic heart failure

Approved

Repatha™ (evolocumab)

Dyslipidemia

Global regulatory reviews

Kyprolis

Relapsed multiple myeloma

ENDEAVOR Phase 3 data received

Global regulatory reviews

Talimogene laherparepvec

Metastatic melanoma

Global regulatory reviews

Brodalumab*

Asthma

Phase 2 terminated

Moderate-to-severe plaque psoriasis

Global submissions

AMG 416

Secondary hyperparathyroidism

Phase 3 data vs. Sensipar received

Global submissions

AMG 334

Episodic migraine

Phase 3 initiation

Omecamtiv mecarbil**

Chronic heart failure

Phase 2 data

ABP 501

(biosimilar adalimumab)

Moderate-to-severe rheumatoid arthritis

Phase 3 data received

ABP 215

(biosimilar bevacizumab)

Non-small cell lung cancer

Phase 3 data

*Developed in collaboration with AstraZeneca

**Developed in collaboration with Cytokinetics

The Company provided the following information on selected product and pipeline programs:

Corlanor

The Company discussed the U.S. Food and Drug Administration (FDA) approval to reduce the risk of hospitalization for worsening heart failure in patients with chronic heart failure.

Repatha

The Company discussed the recent submission of an application seeking marketing approval for the treatment of high cholesterol to the Ministry of Health, Labour and Welfare in Japan.

Omecamtiv mecarbil

The Company announced that results from its oral Phase 2 study in patients with heart failure are expected in the second half of 2015.

Kyprolis

The Company discussed the priority review designation granted by the FDA for the relapsed multiple myeloma indication in the U.S. The Company also discussed the upcoming presentation of the Phase 3 ENDEAVOR study results at a meeting of the American Society of Clinical Oncology (ASCO) and the initiation of a Phase 3 study with weekly dosing.

Talimogene laherparepvec

The Company discussed the upcoming FDA Advisory Committee meeting on April 29 to discuss a Biologics License Application (BLA) for treatment of metastatic melanoma. The Company also announced the completion of enrollment in a Phase 1b study in combination with pembrolizumab in metastatic melanoma.

Vectibix

The Company discussed the recent approval for use in combination with FOLFIRI in RAS wild type first-line metastatic colorectal cancer in the European Union (EU).

Brodalumab

The Company announced that it plans to submit a BLA in the U.S. and a Marketing Authorization Application (MAA) in the EU for moderate-to-severe plaque psoriasis mid-year in 2015. The Company also announced the termination of a Phase 2 asthma study due to futility.

AMG 416

The Company announced that it plans to submit a BLA in the U.S. and a MAA in the EU for secondary hyperparathyroidism in the second half of 2015.

Non-GAAP Financial Measures

In this news release, management has presented its operating results for the first quarters of 2015 and 2014 in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and on an adjusted (or non-GAAP) basis. In addition, management has presented its full year 2015 EPS and tax rate guidance in accordance with GAAP and on an adjusted (or non-GAAP) basis. These non-GAAP financial measures are computed by excluding certain items related to acquisitions, restructuring and certain other items from the related GAAP financial measures. Management has also presented Free Cash Flow (FCF), which is a non-GAAP financial measure, for the first quarters of 2015 and 2014. FCF is computed by subtracting capital expenditures from operating cash flow, each as determined in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the news release.

The Company believes that its presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. The Company uses certain non-GAAP financial measures to enhance an investor's overall understanding of the financial performance and prospects for the future of the Company's core business activities by facilitating comparisons of results of core business operations among current, past and future periods. In addition, the Company believes that excluding the non-cash amortization of intangible assets, including developed product technology rights, acquired in business combinations treats those assets as if the Company had developed them internally in the past, and thus provides a supplemental measure of profitability in which the Company's acquired intellectual property is treated in a comparable manner to its internally developed intellectual property. The Company believes that FCF provides a further measure of the Company's liquidity.

The Company uses the non-GAAP financial measures set forth in the press release in connection with its own budgeting and financial planning. The non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

About Amgen
Amgen is committed to unlocking the potential of biology for patients suffering from serious illnesses by discovering, developing, manufacturing and delivering innovative human therapeutics. This approach begins by using tools like advanced human genetics to unravel the complexities of disease and understand the fundamentals of human biology.

Amgen focuses on areas of high unmet medical need and leverages its biologics manufacturing expertise to strive for solutions that improve health outcomes and dramatically improve people's lives. A biotechnology pioneer since 1980, Amgen has grown to be one of the world's leading independent biotechnology companies, has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential.

Forward-Looking Statements
This news release contains forward-looking statements that involve significant risks and uncertainties, including those discussed below and others that can be found in our Form 10-K for the year ended Dec. 31, 2014, and in any subsequent periodic reports on Form 10-Q and Form 8-K. Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

No forward-looking statement can be guaranteed and actual results may differ materially from those we project. The Company's results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments (domestic or foreign) involving current and future products, sales growth of recently launched products, competition from other products (domestic or foreign), and difficulties or delays in manufacturing our products. In addition, sales of our products are affected by reimbursement policies imposed by third-party payors, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment as well as U.S. legislation affecting pharmaceutical pricing and reimbursement. Government and others' regulations and reimbursement policies may affect the development, usage and pricing of our products. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the U.S. government, we could become subject to significant sanctions. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors. We depend on third parties for a significant portion of our manufacturing capacity for the supply of certain of our current and future products and limits on supply may constrain sales of certain of our current products and product candidate development. In addition, we compete with other companies with respect to some of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Our efforts to integrate the operations of companies we have acquired may not be successful. We may experience difficulties, delays or unexpected costs and not achieve anticipated benefits and savings from our recently announced restructuring plan. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock.

Adjustments to income before income taxes, net of the income tax effect of the above adjustments

288

365

Adjusted net income

$1,911

$ 1,438

Amgen Inc.

GAAP to Adjusted Reconciliations

(In millions, except per share data)

(Unaudited)

The following table presents the computations for GAAP and Adjusted diluted EPS.

Three months ended

Three months ended

March 31, 2015

March 31, 2014

GAAP

Adjusted

GAAP

Adjusted

Net income

$ 1,623

$ 1,911

$ 1,073

$ 1,438

Weighted-average shares for diluted EPS

770

770

768

768

Diluted EPS

$ 2.11

$ 2.48

$ 1.40

$ 1.87

(a)

The adjustments related primarily to non-cash amortization of intangible assets, including developed product technology rights, acquired in business combinations. The 2014 adjustments also included a $99-million charge related to the termination of a supply contract with F. Hoffmann-La Roche Ltd. as a result of acquiring the licenses to filgrastim and pegfilgrastim effective January 1, 2014.

(b)

The adjustments related primarily to non-cash amortization of intangible assets acquired in business combinations.

(c)

The adjustments related primarily to severance expenses.

(d)

The tax effect of the adjustments between our GAAP and Adjusted results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). Generally, this results in a tax impact at the U.S. marginal tax rate for certain adjustments, including the majority of amortization of intangible assets, whereas the tax impact of other adjustments, including restructuring expense, depends on whether the amounts are deductible in the respective tax jurisdictions and the applicable tax rate(s) in those jurisdictions. Due to these factors, the effective tax rates for the adjustments to our GAAP income before income taxes, for the three months ended March 31, 2015 and 2014, were 32.6% and 26.4%, respectively.

Amgen Inc.

Reconciliations of Free Cash Flow

(In millions)

(Unaudited)

Three months ended

March 31,

2015

2014

Operating Cash Flow

$1,329

$1,142

Capital Expenditures

(118)

(172)

Free Cash Flow

$1,211

$ 970

Reconciliation of GAAP EPS Guidance to Adjusted

EPS Guidance for the Year Ending December 31, 2015

(Unaudited)

2015

GAAP diluted EPS guidance

$ 7.78

-

$ 8.13

Known adjustments to arrive at Adjusted earnings*:

Acquisition-related expenses (a)

1.21

Restructuring charges

0.31

-

0.36

Adjusted diluted EPS guidance

$ 9.35

-

$ 9.65

*

The known adjustments are presented net of their related tax impact which amount to approximately $0.71 to $0.73 per share in the aggregate.

(a)

The adjustments relate primarily to non-cash amortization of intangible assets acquired in prior year business combinations.